OREANDA-NEWS. August 15, 2013. “Canadian Natural achieved in the second quarter of 2013 strong quarterly production from our balanced and diverse asset base,” commented Steve Laut, President of Canadian Natural. “On a per barrel of oil equivalent basis, our overall Exploration and Production operating costs decreased from last quarter resulting in excellent overall netbacks.

 This, along with strong WTI benchmark pricing, tighter WCS to WTI differentials and better natural gas pricing helped the Company generate solid cash flow in the quarter. At Kirby South, we are in the final stages of commissioning. Steam injection is expected to commence in late August or early September 2013, approximately three months ahead of the original schedule. Project costs remain within our targeted budget.

By the fourth quarter of 2014, thermal in situ production at Kirby South is targeted to grow to
40,000 bbl/d. Horizon reliability continues to improve after the completion of our first major maintenance turnaround of the plant in May 2013. We continue to achieve safe, steady and reliable operations. In June and July 2013, synthetic crude oil production was 101,000 bbl/d and
110,000 bbl/d, respectively.

During the second quarter, our North America Exploration and Production crude oil and NGL assets, excluding thermal in situ oil sands, achieved record quarterly production of approximately 241,000 bbl/d. These volumes were driven by record quarterly production at our primary heavy crude oil and Pelican Lake operations. This quarter marks the tenth consecutive quarter that our heavy crude oil assets have achieved record production and demonstrates the strong performance ability of the Pelican Lake pool.

As we move into the third quarter of 2013, we expect production volumes to grow in the quarter. Higher production volumes from thermal in situ operations, increased reliability at Horizon Oil  Sands Mining operations and continued strong production performance from all other operating areas of the Company are anticipated. We will continue to operate efficiently and effectively to ensure industry competitive operating costs.”

Corey Bieber, Canadian Natural’s Chief Financial Officer, stated, “We are in an excellent position to realize strong cash flow metrics over the last half of 2013. Midpoint guidance for crude oil production in Q3/13 reflects an increase of approximately 19% over Q2/13 volumes. Furthermore, heavy oil differentials have narrowed as expected. At the same time, benchmark North American crude oil pricing has increased and condensate premium costs have reduced. We
target very robust netbacks in the last half of 2013, which ultimately results in debt levels reflective of 2012, making our balance sheet even stronger, despite substantial capital investments of approximately USD2.075 billion in the calendar year of 2013 on the Horizon Project Phase 2/3 expansion.”